Economics Grade 12 NSC June 2013 Question Paper

Downloaded from hlayiso.com basic education Department: Basic Education REPUBLIC OF SOUTH AFRICA SENIOR CERTIFICATE EXAMINATION ECONOMICS STANDARD GRADE 2013 MARKS: 300 TIME: 3 hours ECONOMICS SG 4042E 40420E This question paper consists of 17 pages. X05 TOI 3 copmghrosned LN ee

Downloaded from hlayiso.com Economics/SG 2 DBE/2013 SCE INSTRUCTIONS AND INFORMATION Read the instructions/information below carefully before answering the questions. 7 2. 10. This question paper consists of EIGHT questions. Answer only SIX questions. This question paper consists of TWO sections, namely SECTION A and SECTION B. SECTION A: QUESTION 1 is COMPULSORY and must be answered by ALL the candidates in the ANSWER BOOK. SECTION B: Answer any FIVE questions from this section in the ANSWER BOOK. If you answer more than six questions, only the first six will be marked in the order in which they appear in the ANSWER BOOK. ALL work you do NOT want to be marked must be clearly crossed out. Use only black or blue ink. Answers in pencil will NOT be marked. Read the questions carefully and start the answer to each question on a NEW page. Leave 2 to 3 lines between subsections of questions. Number the answers correctly according to the numbering system used in this question paper. Answer the questions in full sentences. Non-programmable calculators may be used. Write neatly and legibly. Cony rosred 4 0 Pease tum over

Downloaded from hlayiso.com Economics/SG 3 DBE/2013 SCE SECTION A QUESTION 1 (COMPULSORY) 1.1 MULTIPLE-CHOICE QUESTIONS Various options are provided as possible answers to the following questions. Choose the answer and write only the letter (A-D) next to the question number (1.1.1—1.1.20) in the ANSWER BOOK. NATIONAL INCOME 1.1.1 The difference between an open economy and a closed economy lies in the absence of ... A the government. B households. C_ the foreign sector. D_ the business sector. 1.1.2 Economic growth is measured by an increase in ... A the standard of living. B_ the GDP per capita. C general welfare. D_ the real GDP. 77 The national production of a country includes the market value of ... products. A semi-finished B_ imported C_ exported D finished 1.1.4 Households spend most of their disposable income on ... consumer goods. A durable B luxury C_ non-durable D_ semi-durable PRICE FORMATION 1.1.5 The satisfaction gained from the consumption of an additional unit of a good is known as ... utility. A total B- marginal C_ diminishing D_ increasing Coo on TUT (3) (3) (3) (3) (3)

Downloaded from hlayiso.com Economics/SG 4 SCE DBE/2013 1.1.6 An increase in demand with the price remaining constant will result in the demand curve shifting to the ... A B Cc D right. left. bottom. origin. 1.1.7 The market price is a ... price. A B Cc D short-term medium-term long-term constant 1.1.8 The difference between the price that the consumer is willing to pay for an article and the price that he/she actually pays, is known as ... A B Cc D ECONOMIC opportunity cost. consumer surplus. marginal utility. total cost. DEVELOPMENT, REGIONAL DEVELOPMENT AND URBANISATION 1.1.9 Meeting basic needs is one of the major policy programmes of ... A B Cc D AsgiSA. GEAR. NEPAD. the RDP. 1.1.10 An example of a developing country is ... A France. B Germany. C Canada. D_ South Africa. deed | The Development Bank of Southern Africa was established with the aim of ... A promoting economic development in less developed regions. B investing capital under favourable conditions abroad. C_ making funds available exclusively for agriculture. D_ resolving complex political and constitutional challenges in Copyright reserved Southern Africa. GAUTENG Please turn over (3) (3) (3) (3)

Downloaded from hlayiso.com Economics/SG 5 SCE DBE/2013 1 Most capital-intensive economic activities are found in ... areas. A B Cc D rural township less developed industrial INTERNATIONAL TRADE 1.1.13 Should the value of the rand strengthen against other currencies, _ A B Cc D price of imports will rise. price of imports will fall. price of exports will fall. local standard of living will decrease. 1.1.14 An increase in the value of the rand relative to the British pound sterling may lead to ... the United Kingdom. A B Cc D the lifting of trade restrictions with an embargo on exports to an increase in exports to an increase in imports from 1.1.15 If South Africa sells oranges to Germany, the transaction would be reflected in South Africa's balance of payments as ... A B c D merchandise exports. service payments. merchandise imports. service receipts. 1.1.16 Customs duties that comprise a certain amount per unit of goods imported, is known as ... tariffs. A B c D THE STATE ad valorem specific composite discretionary 77 The budget speech is presented by the ... in Parliament. VOWODY Copyright reserved President minister of economic development minister of finance minister of strategic planning GAUTENG Please turn over (3) (3) (3) (3) (3) (3)

Downloaded from hlayiso.com Economics/SG 6 DBE/2013 SCE 1.1.18 The financial year of the state is from ... A 1 January to 31 December. B_ 1 March to 28/29 February. C 1 February to 31 January. D1 April to 31 March. 1.1.19 Tax avoidance refers to ... A _ illegitimate methods used by individuals to avoid paying tax. B_ legitimate methods used by individuals to reduce their tax burden. C_ illegal methods used to shift the incidence of tax. D_ legal methods used to shift the incidence of tax. 1.1.20 The effort by the state to influence the economy through taxation is known as ... policy. A _ inflation B fiscal C_ redistribution D_ monetary 1.2 Indicate whether the following statements are TRUE of FALSE. Write only ‘true’ of ‘false’ next to the question number (1.2.1-1.2.10) in the ANSWER BOOK. 1.2.1 GDP(E) =C +I +G+(X-M) 1.2.2 A deficit in the state revenue account happens when government expenditure exceeds revenue. 1.2.3 Economic goods have only utility value. 1.2.4 Capital formation is a necessary element for economic growth. 7.) Goods produced and still to be processed are called final goods. 1.2.6 When goods are sold cheaper in a foreign country than in the country of origin, it is called dumping. 1.2.7 Nationalisation is a takeover of ownership from government enterprises by the private sector. 1.2.8 High levels of education and employment opportunities ultimately lead to a lower birth rate. 1.2.9 Urbanisation is the process whereby communities move from urban to rural areas. 4.2.10 The first economy is generally referred to as the informal sector. Copyright reserved OL ATL TL Pease tun over GAUTENG (3) (3) (3) (2) (2) (2) (2) (2) (2) (2) (2) (2) (2)

Downloaded from hlayiso.com Economics/SG iG DBE/2013 SCE 7 Give ONE word/term for each of the following descriptions by choosing a word/term from the list below. Write only the word/term next to the question number (1.3.1—1.3.10) in the ANSWER BOOK. compulsory; mechanisation; inflation; wind; voluntary; development; SARB; opportunity cost; public goods; crude oil; exports; globalisation; Monetary Policy Committee; wages; SARS; devaluation; rent 1.3.1 A sustained increase in the general price level 1.3.2 Goods which are produced and supplied by the state yee Compensation for natural resources 1.3.4 Machines do the work that was formely done by people 1.3.5 A reduction in the value of a country's currency due to government intervention 1.3.6 This committee is tasked with monitoring the repo rate 1.3.7 Labour union membership under closed-shop conditions 1.3.8 A non-renewable energy source 1.3.9 The worldwide movement of goods, services and commercial activities 1.3.10 The central bank of South Africa TOTAL SECTION A: Co se AH LEN] smn (2) (2) (2) (2) (2) (2) (2) (2) (2) (2) 100

Downloaded from hlayiso.com Economics/SG SECTION B 8 SCE DBE/2013 Answer any FIVE questions from this section in the ANSWER BOOK. QUESTION 2: NATIONAL INCOME | Choose the correct word(s) from those given in brackets. Write only the word(s) next to the question number (2.1.1—2.1.2) in the ANSWER BOOK. 2.1.1 If the GDP of a country increases more quickly than the population growth, the average prosperity level will (decrease/increase). fa Goods that are used to manufacture other goods are called (consumer goods/capital goods). 2.2 The production of goods and services in an economy comes from three economic sectors. Name these THREE sectors. 2.3 Study the table below and answer the questions that follow. AT CURRENT PRICES 2011 2012 (Rm) (QUARTER 1) (QUARTER 1) Primary sector 313 226 342 123 Secondary sector 531 532 584 874 Tertiary sector 1710 610 1 867 845 GROSS VALUE ADDED 2 555 368 ? [Source: SARB Quarterly Bulletin, June 2012] 2.3.1 Which sector contributed the least to national income during the first quarter of 2012? 2.3.2 Name any TWO economic activities that can be classified as primary sector activities. 2.3.3 Calculate the gross value added for the first quarter of 2012. 2.3.4 Define the term constant prices. 2.4 Household expenditure can be categorised into FOUR categories. Explain these categories of spending by households in a closed economy. Copyright reserved Please turn over CUTE AU AO (2) (2) (6) (3) (6) (3) (2) (16) [40]

Downloaded from hlayiso.com Economics/SG 9 DBE/2013 SCE QUESTION 3: PRICE FORMATION 3.1 3.2 3.3 3.4 Choose the correct word from those given in brackets. Write only the word next to the question number (3.1.1—3.1.2) in the ANSWER BOOK. 3.1.1 When the consumption of an additional unit renders no utility, the (final/saturation) point is reached. (2) 77 Wants that refer to convenience and comfort are called (luxury/essential) wants. (2) List any THREE factors which determine the value of goods and services. (6) Study the table below and answer the questions that follow. SUPPLY AND DEMAND SCHEDULE OF MICROWAVE OVENS — JANUARY 2013 PRICE QUANTITY QUANTITY (RAND) DEMANDED SUPPLIED 300 80 500 25 000 400 70 200 42 000 600 55 800 46 800 700 48 700 48 700 800 33 400 65 700 1.000 25 300 76 400 1.300 19 600 85 200 1600 8 400 96 300 3.3.1 What is the equilibrium price of microwave ovens in the market? (3) 3.3.2 At what price will consumers buy 70 200 microwave ovens? (3) 3.3.3 Calculate the increase in quantity supplied if the price increased from R700 to R800. (3) 3.3.4 Explain the relationship between the price and the quantity of microwave ovens demanded. (3) 3.3.5 Define the term demand. (2) Name and discuss any FOUR characteristics (nature) of wants. (16) [40] cori eae CR LENE es

Economics/SG 10 DBE/2013 Downloaded from hlayiso.com SCE QUESTION 4: ECONOMIC AND - REGIONAL DEVELOPMENT, AND 4.1 4.2 4.3 44 Copyant reserved NN AO} 00 8 Mease turn over URBANISATION Choose the correct word from those given in brackets. Write only the word next to the question number (4.1.1-4.1.2) in the ANSWER BOOK. 4.1.1 A high level of capital formation is a characteristic of a (developing/developed) country. 4.1.2 Economic development in Southern Africa is promoted by the (DBSA/NEPAD). List any THREE activities typically found in the informal sector. Study the extract below and answer the questions that follow. INFRASTRUCTURE INVESTMENT KEY TO IMPROVING SERVICE DELIVERY To improve the delivery of, and access to, basic services and to increase the capacity and efficiency of the economy, government will over the next three years invest R827 billion in the building of new and the upgrading of existing infrastructure. These investments will improve access by South Africans to healthcare facilities, schools, water, sanitation, housing and electrification. (Source: Budget speech 2013, People's Guide] 4.3.1 Identify ONE aim of the RDP from the text. 4.3.2 State any THREE advantages of this infrastructure investment. 4.3.3 Define the term economic development. Name and discuss any FOUR advantages of urbanisation. (2) (2) (6) (3) (9) (2) (16) [40]

Downloaded from hlayiso.com Economics/SG 11 DBE/2013 SCE QUESTION 5: INTERNATIONAL ECONOMICS ou Choose the correct word from those given in brackets. Write only the word next to the question number (5.1.1-5.1.2) in the ANSWER BOOK. 5.1.1 Merchandise imports are (added/deducted) in the current account of the balance of payments. (2) 5.1.2 Import substitution promotes (domestic/foreign) businesses. (2) 5.2 List any THREE reasons for international trade. (6) 5.3 Study the cartoon characters of currency symbols below and answer the questions that follow. qa Pua A B D 5.3.1 Name any THREE of the currencies above. (9) 7 Name the currency that has the highest exchange rate value in terms of the rand. (3) 5.3.3 Which currency is used the most in the world for international transactions? (2) 5.4 Explain import duties as a protection strategy. (16) [40] Con se A Ase

Downloaded from hlayiso.com Economics/SG 12 DBE/2013 SCE QUESTION 6: THE STATE 6.1 Choose the correct word from those given in brackets. Write only the word next to the question number (6.1.1-6.1.2) in the ANSWER BOOK. 6.1.1 Public debt arises when money has been borrowed by the (individual/state). 6.1.2 The aim of (monetary/fiscal) policy is to regulate the money supply in the economy. 6.2 List any THREE requirements of a good tax system. 6.3 Study the 2013/14 government expenditure below and answer the questions that follow. GOVERNMENT EXPENDITURE 2013/14 R (bn) Economic affairs 136,6 Housing and community amenities 132,1 Health 133,6 Education 232,5 Social protection 134,9 Employment and social security 49,2 Defence 44,6 Public order and safety 108,9 Other 176,8 TOTAL GOVERNMENT EXPENDITURE R1 149,20 [Source: Budget speech 2013, People's Guide] 6.3.1 What percentage of total government expenditure for the 2013/14 financial year was allocated to education? Show your calculations. 6.3.2 State any TWO advantages of spending on employment and social security. 6.3.3 Give ONE example of a social service. 6.4 List and discuss any FOUR objectives of the state's economic policy. cori mead A AL) sn (2) (2) (6) (5) (3) (16) [40]

Economics/SG 13 DBE/2013 Downloaded from hlayiso.com SCE QUESTION 7: ECONOMIC AND REGIONAL DEVELOPMENT, URBANISATION 7.1 7.2 7.3 TA Cont rosared 0 Pose um ovr AND THE STATE Choose the correct word from those given in brackets. Write only the word next to the question number (7.1.1—7.1.2) in the ANSWER BOOK. 7.1.1 An example of taxation that cannot be shifted is (CGT/VAT). — An effect of HIV/Aids on the South African society is a/an (increase/decrease) in state revenue. List any THREE services that are NOT included in national income figures. Study the imaginary income tax table below and answer the questions that follow. TAXABLE % TAX % TAX % TAX INCOME PAID PAID PAID (PER MONTH) BYD BYE BYF R10 000 15% 15% 15% R18 000 17% 15% 14% R30 000 19% 15% 13% R42 000 21% 15% 12% R55 000 23% 15% 11% 7.3.1 What tax scale is applied to individual F? 7.3.2 Calculate the amount of tax paid by individual E when his/her taxable income is R10 000 per month. Show your calculations. 7.3.3 Name the tax scale which is the most fair according to the above table. Substantiate your answer. 7.3.4 What is the personal income tax system used in South Africa generally known as? Distinguish between free and economic goods with regard to their characteristics. (2) (2) (6) (3) (4) (5) (2) (16) [40]

Downloaded from hlayiso.com Economics/SG 14 DBE/2013 SCE QUESTION 8: (CHOICE MODULES) IMPORTANT SOUTH AFRICAN ECONOMIC TOPICS Choose any TWO of the following topics (8.1-8.4). Write clear headings to indicate the topics of your choice. 8.1 LABOUR RELATIONS 8.1.1 Choose the correct word from those given in brackets. Write only the word in the ANSWER BOOK. The remuneration for labour is (wages/profit). (2) 8.1.2 State any TWO functions of the CCMA. (4) 8.1.3 Study the cartoon below and answer the questions that follow. We want a minimum wage of R19 500 (a) What does the abbreviation COSATU stand for? (3) (b) What important function of trade unions is illustrated by the above cartoon? (3) 8.1.4 Briefly discuss the functions of the industrial court/labour court. (8) AND/OR Conese NAN A 0 A Pease tum over

Economics/SG Downloaded from hlayiso.com 15 DBE/2013 SCE 8.2 PRODUCTIVITY AND UNEMPLOYMENT 8.2.1 8.2.2 8.2.3 8.2.4 Copyright reserved Choose the correct word from those given in brackets. Write only the word in the ANSWER BOOK. Unemployment that occurs as a result of technological innovation is known as (frictional/structural) unemployment. Name any TWO types of productivity. Study the extract below and answer the questions that follow. LABOUR PRODUCTIVITY Consistent with the trend in industrial action and a decline in production levels, labour productivity growth in the formal non-agricultural sector of the economy decelerated to 1,9% in 2008 and further to 1,6% in 2009. Labour productivity growth picked up at a year-on-year rate of 5% in the first quarter of 2010. Labour productivity in the manufacturing sector decreased markedly by 6,2% in 2009 as a whole in the wake of the economic recession. [Source: SARB: Annual Economic Report 2010] (a) What has happened to productivity in 2010 when compared to that of 2009? (b) Give ONE reason for the decrease in productivity in 2009. Briefly discuss seasonal unemployment. AND/OR SLL LL Pease turn over GAUTENG (2) (4) (3) (3) (8)

Downloaded from hlayiso.com Economics/SG 16 DBE/2013 SCE 8.3 INFLATION 8.3.1 Choose the correct word from those given in brackets. Write only the word in the ANSWER BOOK. Inflation (promotes/discourages) savings. (2) 8.3.2 State any TWO factors which cause demand-pull inflation. (4) 8.3.3 Study the extract below and answer the questions that follow. ELECTRICITY MORE EXPENSIVE BY 8% The decision by the National Energy Regulator of South Africa (NERSA) to give Eskom an average 8% increase in electricity tariffs for each of the next five years was good for containing costs in the short term, experts said yesterday. Business and labour unions commended NERSA for granting only half of Eskom's proposed tariff hike, but they were concerned that the increase remained above the inflation rate. Consumer inflation is forecast to be 5,6% this year and 5,5% next year. [Source: Pretoria News Business Report, 1 March 2013] (a) What is the consumer inflation rate forecasted for 2014? (3) (b) Name ONE cause of producer inflation mentioned in the above extract. (3) 8.3.4 Name and discuss any TWO consequences of inflation. (8) AND/OR Conroe ANA A 8 A Pease tm over

Economics/SG Downloaded from hlayiso.com a7 DBE/2013 SCE 8.4 STRATEGIC RESOURCES 8.4.1 8.4.2 8.4.3 8.4.4 Copyright reserved Choose the correct word from those given in brackets. Write only the word in the ANSWER BOOK. South Africa's first nuclear power station is called (PetroSA/ Koeberg). Name any TWO non-agricultural economic uses of water in South Africa. Study the extract below and answer the questions that follow. ENERGY CRISIS PULLS THE PLUG ON INVESTMENTS International investors have abruptly ended negotiations with government on future investments in South Africa because of the power crisis in the country. Industries lost millions due to lost production; workers lost thousands in wages due to downtime; tons of food have gone to waste, both commercially and domestically, and investor confidence has been seriously damaged. [Adapted from Sunday Times, Business Times, 12 March 2006] Name any TWO serious consequences of power failures on the South African economy. Briefly discuss the importance of water supply and water conservation with regard to the primary sector of the South African economy. TOTAL SECTION B: GRAND TOTAL: A 0 0 (2) (4) (6) (8) [40] 200 300